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Loans Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans receivable, net, at December 31, 2020 and 2019 are summarized below.


	December 31,
	2020				2019
	Balance		% of Total Gross Loans		Balance		% of Total Gross Loans
Residential Real Estate Loans	$	78,907,159	15.8	%	$	86,404,304	18.4	%
Consumer Loans	55,335,425		11.1	%	56,331,013		12.0	%
Commercial Business Loans	19,704,862		3.9	%	22,234,189		4.8	%
Commercial Real Estate Loans	299,299,647		59.8	%	303,550,905		64.8	%
Paycheck Protection Program Loans	47,105,618		9.4	%	—		—	%
Total Loans Held For Investment	500,352,711		100.0	%	468,520,411		100.0	%
Loans Held For Sale	5,693,400				3,990,606
Total Loans Receivable, Gross	506,046,111				472,511,017
Less:
Allowance For Loan Losses	12,842,896				9,225,574
Loans in Process	12,197,417				9,957,140
Deferred Loan Fees	1,838,426				469,568
	26,878,739				19,652,282
Total Loans Receivable, Net	$	479,167,372			$	452,858,735

Financing Receivable Credit Quality Indicators

The following tables summarize the loan grades used by the Bank to measure the credit quality of gross loans receivable, excluding those held for sale, by loan segment at December 31, 2020 and 2019.


December 31, 2020	Pass		Caution		Special Mention		Substandard		Total Loans
Residential Real Estate	$	65,437,564	$	9,675,300	$	799,446	$	2,994,849	$	78,907,159
Consumer	42,926,887		10,525,814		891,107		991,617		55,335,425
Commercial Business	15,315,677		3,851,517		309,100		228,568		19,704,862
Commercial Real Estate	221,696,863		56,642,660		16,349,302		4,610,822		299,299,647
PPP	47,105,618		—		—		—		47,105,618
Total	$	392,482,609	$	80,695,291	$	18,348,955	$	8,825,856	$	500,352,711


December 31, 2019	Pass		Caution		Special Mention		Substandard		Total Loans
Residential Real Estate	$	76,674,539	$	4,612,182	$	1,155,802	$	3,961,781	$	86,404,304
Consumer	44,294,400		9,617,301		624,248		1,795,064		56,331,013
Commercial Business	16,140,592		5,486,393		301,462		305,742		22,234,189
Commercial Real Estate	230,810,756		56,025,352		14,285,015		2,429,782		303,550,905
Total	$	367,920,287	$	75,741,228	$	16,366,527	$	8,492,369	$	468,520,411

Past Due Financing Receivables

The following tables present an age analysis of past due balances by category at December 31, 2020 and 2019.


	December 31, 2020
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable
Residential Real Estate	$	—	$	152,634	$	160,152	$	312,786	$	78,594,373	$	78,907,159
Consumer	292,498		30,610		91,870		414,978		54,920,447		55,335,425
Commercial Business	49,554		—		7,152		56,706		19,648,156		19,704,862
Commercial Real Estate	735,456		346,850		550,409		1,632,715		297,666,932		299,299,647
PPP	—		—		—		—		47,105,618		47,105,618
Total	$	1,077,508	$	530,094	$	809,583	$	2,417,185	$	497,935,526	$	500,352,711


	December 31, 2019
	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans Receivable
Residential Real Estate	$	—	$	355,290	$	144,209	$	499,499	$	85,904,805	$	86,404,304
Consumer	422,443		217,542		81,736		721,721		55,609,292		56,331,013
Commercial Business	147,959		76,515		20,316		244,790		21,989,399		22,234,189
Commercial Real Estate	3,849,424		—		1,352,716		5,202,140		298,348,765		303,550,905
Total	$	4,419,826	$	649,347	$	1,598,977	$	6,668,150	$	461,852,261	$	468,520,411

Schedule of Financing Receivables, Non Accrual Status

The following table shows non-accrual loans by category at December 31, 2020 compared to 2019.


	December 31, 2020				December 31, 2019				Increase (Decrease)
	Amount		Percent (1)		Amount		Percent (1)		$		%
Non-accrual Loans:
Residential Real Estate	$	1,682,240	0.4	%	$	1,520,485	0.3	%	$	161,755	10.6	%
Consumer	402,878		0.1		319,280		0.1		83,598		26.2
Commercial Business	100,408		—		122,605		—		(22,197)		(18.1)
Commercial Real Estate	939,946		0.2		1,474,036		0.3		(534,090)		(36.2)
Total Non-accrual Loans	$	3,125,472	0.7	%	$	3,436,406	0.7	%	$	(310,934)	(9.0)	%

(1) PERCENT OF GROSS LOANS RECEIVABLE HELD FOR INVESTMENT, NET OF DEFERRED FEES AND LOANS IN PROCESS.

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent

The following tables show the allowance for loan losses by loan category for the years ended December 31, 2020, 2019 and 2018.


	For the Year Ended December 31, 2020
	Residential Real Estate		Consumer		Commercial Business		Commercial Real Estate		Total
Beginning Balance	$	1,390,594	$	1,210,849	$	544,764	$	6,079,367	$	9,225,574
Provision	136,063		251,948		655,317		2,556,672		3,600,000
Charge-Offs	(9)		(226,760)		(35,048)		(19,453)		(281,270)
Recoveries	2,300		62,618		—		233,674		298,592
Ending Balance	$	1,528,948	$	1,298,655	$	1,165,033	$	8,850,260	$	12,842,896


	For the Year Ended December 31, 2019
	Residential Real Estate		Consumer		Commercial Business		Commercial Real Estate		Total
Beginning Balance	$	1,191,443	$	1,203,593	$	923,600	$	5,853,081	$	9,171,717
Provision	227,624		324,394		(392,817)		215,799		375,000
Charge-Offs	(34,599)		(432,003)		(1,132)		(517,583)		(985,317)
Recoveries	6,126		114,865		15,113		528,070		664,174
Ending Balance	$	1,390,594	$	1,210,849	$	544,764	$	6,079,367	$	9,225,574


	For the Year Ended December 31, 2018
	Residential Real Estate		Consumer		Commercial Business		Commercial Real Estate		Total
Beginning Balance	$	1,233,843	$	1,144,815	$	1,011,227	$	4,831,733	$	8,221,618
Provision	2,411		173,235		(55,109)		804,463		925,000
Charge-Offs	(46,419)		(224,954)		(32,518)		(351,894)		(655,785)
Recoveries	1,608		110,497		—		568,779		680,884
Ending Balance	$	1,191,443	$	1,203,593	$	923,600	$	5,853,081	$	9,171,717

Allowance for Credit Losses on Financing Receivables

The following tables summarize the impaired loans evaluated individually and collectively for impairment within the allowance for loan losses and loans receivable balances at December 31, 2020 and 2019.


	Allowance For Loan Losses						Loans Receivable
December 31, 2020	Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total		Individually Evaluated For Impairment		Collectively Evaluated For Impairment		Total
Residential Real Estate	$	—	$	1,528,948	$	1,528,948	$	1,284,303	$	77,622,856	$	78,907,159
Consumer	—		1,298,655		1,298,655		161,869		55,173,556		55,335,425
Commercial Business	—		1,165,033		1,165,033		53,047		19,651,815		19,704,862
Commercial Real Estate	—		8,850,260		8,850,260		720,111		298,579,536		299,299,647
PPP	—		—		—		—		47,105,618		47,105,618
Total	$	—	$	12,842,896	$	12,842,896	$	2,219,330	$	498,133,381	$	500,352,711
December 31, 2019
Residential Real Estate	$	—	$	1,390,594	$	1,390,594	$	1,086,433	$	85,317,871	$	86,404,304
Consumer	—		1,210,849		1,210,849		184,402		56,146,611		56,331,013
Commercial Business	—		544,764		544,764		64,406		22,169,783		22,234,189
Commercial Real Estate	—		6,079,367		6,079,367		1,894,642		301,656,263		303,550,905
Total	$	—	$	9,225,574	$	9,225,574	$	3,229,883	$	465,290,528	$	468,520,411

Impaired Financing Receivables

The following tables present information related to impaired loans by loan category as of and for the years ended December 31, 2020, 2019 and 2018.


	December 31, 2020
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	1,284,303	$	1,284,303	$	—	$	1,877,590	$	24,597
Consumer	161,869		170,169		—		210,722		1,591
Commercial Business	53,047		948,046		—		58,597		—
Commercial Real Estate	720,111		865,531		—		1,717,842		56,737










Total	$	2,219,330	$	3,268,049	$	—	$	3,864,751	$	82,925

(4) Loans Receivable, Net, Continued


	December 31, 2019
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	1,086,433	$	1,086,433	$	—	$	1,322,609	$	—
Consumer	184,402		192,702		—		1,106,795		—
Commercial Business	64,406		959,406		—		71,422		—
Commercial Real Estate	1,894,642		2,066,862		—		3,893,786		54,372










Total	$	3,229,883	$	4,305,403	$	—	$	6,394,612	$	54,372


	December 31, 2018
Impaired Loans	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Residential Real Estate	$	1,700,861	$	1,700,861	$	—	$	1,743,906	$	31,853
Consumer	986,380		994,680		—		502,479		—
Commercial Business	77,206		972,206		—		85,020		—
Commercial Real Estate	5,084,458		6,116,761		—		8,052,817		212,186
With an Allowance Recorded:

Consumer	73,662		73,662		73,662		6,139		—

Commercial Real Estate	1,441,558		1,441,558		665,000		636,387		84,881
Total
Residential Real Estate	1,700,861		1,700,861		—		1,743,906		31,853
Consumer	1,060,042		1,068,342		73,662		508,618		—
Commercial Business	77,206		972,206		—		85,020		—
Commercial Real Estate	6,526,016		7,558,319		665,000		8,689,204		297,067
Total	$	9,364,125	$	11,299,728	$	738,662	$	11,026,748	$	328,920

Troubled Debt Restructurings on Financing Receivables

In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. A troubled debt restructuring ("TDR") is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a borrower that it would not otherwise consider (FASB ASC Topic 310-40). The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation. The Bank grants such concessions to reassess the borrower’s financial status and develop a plan for repayment.

At the date of modification, TDRs are initially classified as nonaccrual TDRs. They are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower's financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months).